I'm the President of Sportsimpacts and the Director of the Sports Business Program at Washington University in St. Louis. I've conducted research at Super Bowls, Final Fours, All-Star Games, Ryder Cups, and numerous Division I NCAA Championship events. www.sportsimpacts.net www.wustl.edu

Why the NBA is More Relevant than MLB in the 21st Century

Did ya see that World Series? According to Nielsen ratings, that puts you in the minority.

No, this is not the rantings of a disappointed St Louis Cardinals fan who had the opportunity to enjoy two straight World Series appearances snatched away by a resilient San Francisco Giants club that overcame steroid users and playoff deficits to be crowned champions for the 2nd time in 3 years.

Rather, this is the product of historical fact. Consider Fox’s ratings and viewership of the World Series since 2000:

WORLD SERIES AUDIENCE TREND ON FOX

YEAR

GMS

RAT.

VIEWERS (000)

MATCHUP

’12

4

7.6

12,700

Giants-Tigers

’11

7

10

16,600

Cardinals-Rangers

’10

5

8.4

14,268

Giants-Rangers

’09

6

11.7

19,400

Yankees-Phillies

’08*

5

8.4

13,635

Phillies-Rays

’07

4

10.6

17,123

Red Sox-Rockies

’06

5

10.1

15,812

Cardinals-Tigers

’05

4

11.1

17,162

White Sox-Astros

’04

4

15.8

25,390

Red Sox-Cardinals

’03

6

12.8

20,142

Marlins-Yankees

’02

7

11.9

19,261

Angels-Giants

’01

7

15.7

24,528

D’Backs-Yankees

’00

5

12.4

18,081

Yankees-Mets

Fox finished with a 7.6 rating and 12.7 million viewers for the Giants’ sweep of the Tigers, marking the smallest audience for any World Series on record. The 7.6 rating is 10% below the previous low set during the ’10 Giants-Rangers match-up and ’08 Phillies-Rays match-up — both of which went to five games.

Meanwhile, despite the fact that many basketball experts and fans believe that it is a fait accompli that Miami, Boston, Oklahoma City, and Los Angeles Lakers (if they can make a damn free throw) will comprise the NBA’s Final Four this season, there is seemingly more excitement than ever for the beginning of an NBA season.

There is little doubt that MLB still generates more revenue than the NBA. Plunkett Research estimates that MLB created $7.7 billion in 2012 revenues compared to the NBA’s $4.3 billion produced in 2010-11 (the last full season).

But when you consider that the NBA’s crescendo has outpaced baseball’s in each of the last 3 years (as the table shows below), this lends further credence to a changing of the guard.

Granted, the last 3 NBA Finals have featured either (1) the greatest historic basketball rivalry in L.A. and Boston which was a rematch from 2 years prior, or (2) LeBron’s quest for his first NBA title. Meanwhile, the last 3 World Series have not included teams called Yankees, Red Sox, Dodgers, or Cubs. So part of the ratings story is evident there.

But historical comparisons of regular season ratings is perhaps more telling of what seemingly is a declining interest to consume baseball on TV.

Consider that Fox’s MLB Saturday numbers are following a decade-long decline.

FOX MLB SATURDAY REGULAR-SEASON TREND

YEAR

RATING

VIEWERS (000)

’12

1.7

2,500

’11

1.8

2,744

’10

1.8

2,700

’09

1.8

2,700

’08

2

2,900

’07

2.3

3,312

’06

2.4

3,348

’05

2.6

3,606

’04

2.7

3,727

’03

2.7

3,600

’02

2.5

3,445

’01

2.6

3,377

As are ESPN’s ratings for regular season game, including their signature Sunday Night game.

- Athleticism and showmanship drive brand awareness more so than ever before.

In the 1950s and 60s, we didn’t have skateboarding, BMX, Shaun White, Travis Pastrana, and more. Kids want hip, they want technology. There are more options, and in a world of attention deficits and hyperactivity, young boys would rather chase boards down snow slopes than baseballs on a diamond of grass and dirt.

Baseball has no hipster feel, and it certainly has displayed little gumption to further implement technology into its proceedings the way seemingly many other sports (including the NBA) have warmly embraced.

Furthermore, the NBA is a league of stars who are their own brands. But in promoting their own brands, they help promote their team brand as well as the league’s logo.

There’s a reason why, if you review Sports Illustrated’s wealthiest athletes, (1) there are more NBA players making significant endorsement coin compared to all other teams sports including baseball, and (2) the top NBA product endorsers are making roughly 3 times more endorsement money than baseball’s most visible players.

The flash and panache of stars performing on the hardwood trumps slow and methodical in the world of athlete engagement, influence, and impact on viewers and consumers.

And only exacerbating these realities is the fact that the NBA has done a superior job of growing its brand internationally. Baseball has global appeal as well, but it is not as exhaustive as the NBA’s. The only sport more globally popular is soccer.

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